While it’s not a lot of money, paying for auto insurance every month doesn’t exactly feel like spending “fun money.” But you may, in fact, be able to lower your car insurance premiums by taking advantage of these smart tips.
Change the Way You Pay Your Bill
The best way to save on your car insurance premium is to rethink the way you make your payments. A number of auto insurance companies offer numerous discounts to people who sign up for automatic payments, pay their premium online, and make advance payments. Drivers who take advantage of these discounts could save up to 10%, depending on the insurance company.
Rethink Your Coverage
Another great way to save money on auto insurance premiums is by carefully reading through your policy and removing any coverage you don’t really need. For instance, if you’ve just purchased a car, you may not need roadside assistance coverage since most car manufacturers offer that coverage for free for the first few years. Similarly, if your car is older than 10 years, it makes sense to drop the comprehensive coverage since you will likely not be receiving too high a payout in case you file a claim due to depreciation.
Bundle Your Insurance Plans
You can save a good amount of money on your premium when you bundle several insurance plans with the same company. This means you can purchase your home, auto, and health insurance plans from the same company and receive a discount for doing this. Also, if you’ve got more than one car, consider buying insurance for all vehicles from the same company to get a multi-vehicle policy discount.
Add Young Drivers to A Parent’s Policy
Having a young driver on either parent’s policy typically results in lower car insurance rates, in comparison to the cost of insuring a young driver on their own auto insurance plan. However, if your teen has had accidents, tickets, or claims in the past, you may have to pay higher auto insurance premiums. That said, it’s smart to compare the difference in pricing for a separate policy for your child versus keeping them on your plan.